European markets to start the week on a negative note as Israel-Iran attacks escalate
London.
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Good morning and welcome to CNBC's live blog covering European financial market action and the latest regional and global business news, data and earnings.
Futures data from IG suggests London's FTSE will open 2 points lower at 8,841, Germany's DAX down 42 points at 23,455, France's CAC 40 down 14 points at 7,664 and Italy's FTSE MIB 65 points lower at 39,858.
Global markets on Monday will be assessing escalating Israel-Iran tensions after a weekend of tit-for-tat missile attacks and airstrikes. Oil prices have risen as a result of the strikes, which have seen energy facilities targeted, and gold prices have rallied as investors sought a safe haven asset.
— Holly Ellyatt
It's a busy week for investors and markets, with the U.S. Federal Reserve's next interest rate decision due Wednesday.
Fed funds futures are pricing in a nearly 97% likelihood of the central bank keeping rates unchanged, as per CME's FedWatch tool, despite U.S. President Donald Trump's continued pressure on Fed Chief Jerome Powell for a rate cut.
Some key gatherings and data releases will also be watched closely this week. The Paris Air Show kicks off Monday, and last week's Air India disaster and flaring tensions in the Middle East are likely to dominate conversations there. Meanwhile, the Group of Seven industrialized nations are meeting in Canada for the next few days.
The flags of Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, and the European Union ahead of the Group of Seven (G-7) Leaders' Summit in Banff, Alberta, Canada, on Saturday, June 14, 2025.
Bloomberg | Bloomberg | Getty Images
On the data front, the ZEW survey of economic sentiment in Germany and Europe will be released on Tuesday and U.K. inflation data is due Wednesday.
We then have the Bank of England's monetary policy decision on Thursday. Economists aren't expecting a rate cut at the meeting, with the bank highly likely to keep its base rate at 4.25%.
— Holly Ellyatt
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